TEMPO.CO, Jakarta - National flag carrier Garuda Indonesia in 2021 reportedly logged losses attributed to its parent entity up to $4.16 billion (Rp62 trillion), which is a stark rise compared to the previous year in 2020 of $2.44 billion.

Citing the air carrier’s 2021 audited financial report, the company as a group logged 10.43 percent less revenue amounting to $1.33 billion. It was mostly generated from scheduled flights ($1.04 billion), non-scheduled flights ($88.05 million, and other revenues amounting to $207 million from other sources.

Garuda’s equity was negative $6.1 billion with a larger total liability than assets.

According to the Indonesia Stock Exchange (IDX) public expose, Garuda’s liability as of December 31, 2021, amounted to $13.3 billion, which is an increase compared to the previous year's at $12.73 billion.

Meanwhile, Garuda's assets dropped to $7.19 billion from previously $10.78 billion. However, as a group, the company's business operations expenses decreased by 21.03 percent or $2.6 billion compared to the previous year.

Garuda Indonesia president director Irfan Setiaputra is projecting the company to record positive performance in 2022, “And will be optimized even further gradually to 2-3 years ahead to reach the company’s pre-pandemic levels.”

Irfan said the trend of passenger movement showed an increase. On the other hand, in 2022, this state-owned company has reached a homologation agreement with its creditors or has passed the postponement of payment of debt obligations.

"We are optimistic that corporate performance will gradually recover in the near future by optimizing positive performance on Garuda's revenue line," said Irfan.

Regardless of the pressure on business performance in 2021, Irfan claimed that fundamentally, Garuda Indonesia's operations show an improving trend. Cargo transportation, for example, increased by 20.38 percent compared to the same period in 2020.

Garuda also recorded an increase in the proportion of cargo revenue to the company's overall revenue. Its total operating income was 24.85 percent, an increase compared to 2020 which was 17.74 percent.

FRANSISCA CHRISTY ROSANA

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